Unplanned and uncontrolled use of Liquefied Petroleum
Gas (LPG) has created unrest, confusion and even danger for large number
of people all over country. Apart from domestic consumers, people in
northern areas and transporters heading towards different blind
directions as government has not come up with new policy of LPG which is
a necessity in the light of new prices of POL and LPG. Like Petroleum
products, LPG prices have also gone to record level putting thousands of
people into confusion. Experts said that prices and usage of LPG would
further go the same direction.

Here are the objectives to allow LPG in the private
sector and key points of the Government policy. I)
To promote LPG as a replacement fuel in remote hilly areas with a view
to save our precious forests and to keep our environment free of
pollution. II)
To encourage use of LPG as a domestic fuel in cities, towns and villages
where supply of natural gas is not available or its supply is
technically or financially not viable. III)
To privatize LPG business of public sector companies.

STRATEGY

The steps for long terms implementation and promotion
of LPG business through de-regulation policy are. 1)
All LPG business in the public sector to be privatized to create
competitive environment. 2)
Safety standards and consumer services to be brought at international
level. 3)
Extension of LPG distribution network to far-flung areas and backward
areas of the country. 4)
Distribution of LPG in small cylinders for low-income group to be
encouraged. 5)
Introduction of small filling plants in far-flung areas. 6)

Bulk supply of LPG to multi-storey flats and big commercial/industrial
consumers to be encouraged. 7)
Supply of air mixed LPG to towns/villages where supply of natural gas is
technically/economically not feasible to be considered. 8)
Use of LPG in automotive vehicles for petrol import bill reduction to be
considered. In the above policy points northern areas were kept on top
of priority for the protection of country's forest and secondly the
people in those areas who do not have access to the gas and POL
products.

But instead of upgrading the standard system of LPG
use after few incidents in northen areas, the authorities banned LPG
use. In an official order government imposed a ban on the sale of Liquid
Petroleum Gas (LPG) in busy areas of the city and asked LPG dealers to
immediately leave their stations. Officially the step was taken by the
authority to prevent future incidents like the Gayal tragedy on August 2
in Diamer district. Authorities also asked the NA Public Works
Department not to issue explosive sticks and detonators without
permission. Reacting to the government's decision, LPG dealers
threatened to protest if the decision was not withdrawn.

But on the contrary, use of LPG started just opposite
of the government policies. Presently about 900 tonnes/day LPG is being
produced locally from eight sources. There are 22 LPG companies
marketing the indigenous and imported LPG. The government had taken a
bold and far reaching initiative to liberalize integrated infrastructure
projects of LPG free from government guarantees and permission and also
allowed for import of machinery, equipment, specialized vehicle,
consumables etc. on concessional rate of duties. This was in order to
ensure availability of domestic and imported LPG at competitive and
viable prices in far-flung areas, where supply of gas through pipelines
is not economically feasible. The Government had deregulated the
allocation and prices of LPG with a view in keeping the prices at a
reasonable level through demand-supply mechanism.